Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2018
(Based on Japanese GAAP)
October 30, 2018
Company name:
CREO CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

9698
URL http://www.creo.co.jp
President and Representative Director

Junichi Kakizaki

Inquiries:
Managing Director, Financial DirectorScheduled date to file Quarterly Securities Report:

Takashi Ameda
November 14, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–Yes

Holding of quarterly financial results meeting:

Yes

TEL

03-5783-3560(for analysts, institutional investors and general investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)
Net salesSix months ended September 30, 2018
Six months ended September 30, 2017

Millions of yen
6,181
5,582

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
10.7
152 411.1
184 215.6
129 522.2
3.8
29 (35.6)
58 (20.8)
20 (48.7)

Earnings per share

Diluted earnings per share

Yen
15.64
2.51

Six months ended September 30, 2018
Six months ended September 30, 2017

Yen––(2) Consolidated financial position
Total assets
As of September 30, 2018
As of March 31, 2018

Net assets

Millions of yen
7,573
7,525

Equity ratio

Millions of yen
5,323
5,315

%
69.8
70.2

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
15.00

Yen
15.00

–

20.00

20.00

Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
13,100
6.8
570
38.8
590
28.8
400
30.9
48.20

1

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2018

8,650,369 shares As of March 31, 2018

8,650,369 shares

351,016 shares As of March 31, 2018

350,927 shares

Number of treasury shares at the end of the period
As of September 30, 2018

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

8,299,386 shares Six months ended September 30, 2017

2

8,318,983 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

3,483
2,514

3,8791,971

Merchandise and finished goods
Work in process

4235

1448

Other

206

213

6,445

6,514

328

321

Goodwill
Patent right

93
174
1

Software
Software in progress

272
95

304
60

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Other

00

463

441

Investment securities
Other

3308

2316

Allowance for doubtful accounts

(23)

(23)

Total intangible assets
Investments and other assets

Total investments and other assets

288

295

1,079

1,058

7,525

7,573

Accounts payable - trade
Accounts payable - other518
324509283

Income taxes payable
Advances received

119
184

64
365

Provision for bonuses
Provision for directors' bonuses

485
5510–

Other

430

377

2,067

2,112

26
63

26
68

Total non-current assets
Total assets
Liabilities
Current liabilities

Total current liabilities
Non-current liabilities
Directors' retirement benefits payable
Asset retirement obligations
Other

52

43

Total non-current liabilities

142

138

2,210

2,250

Total liabilities

3

(Millions of yen)
As of March 31, 2018

As of September 30, 2018

Net assets
Shareholders' equity
Capital stock

3,1493,149

Capital surplus
Retained earnings

562
1,718

562
1,723

Treasury shares

(148)

(148)

Total shareholders' equity

5,281

5,286

Valuation difference on available-for-sale securities

00

Total accumulated other comprehensive income

00

33

36

5,315

5,323

7,525

7,573

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Net sales
Cost of sales

5,582
4,504

6,181
4,945

Gross profit

1,077

1,235

Selling, general and administrative expenses

1,047

1,082

29152

Interest income
Dividend income

1000

Subsidy income
Other

20
825
5Total non-operating income

30

3200

Other

10

Total non-operating expenses

11

Ordinary profit

58184

Extraordinary income
Gain on sales of investment securities

2–

2–

2–

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

Total extraordinary income
Extraordinary losses
Other2–

Profit before income taxes

Total extraordinary losses

58184

Income taxes - current
Income taxes - deferred

33050
0Total income taxes

3450

Profit23133

Profit attributable to non-controlling interests

24

Profit attributable to owners of parent

20

129

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2017

September 30, 2018
23133

Valuation difference on available-for-sale securities(1)

0Total other comprehensive income(1)0Comprehensive income

22133

Comprehensive income attributable toComprehensive income attributable to owners of parent

20

129

14

Comprehensive income attributable to non-controllinginterests

6Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Six months ended

Six months ended

September 30, 2017

September 30, 2018
58

184

Depreciation
Amortization of goodwill

136
19

121
19

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

74(4)

25(5)

Interest and dividend income
Interest expenses

(1)
0(0)
0

Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities

(2)
––0

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

418
(256)

543
(209)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other

(70)
(43)

(8)
(36)

Increase (decrease) in accrued consumption taxes
Other, net

(114)
170

(47)
125

Subtotal

385

712Interest and dividend income receivedInterest expenses paid

1(0)

0(0)

Income taxes paid

(52)

(89)

Net cash provided by (used in) operating activities

333623Purchase of property, plant and equipment
Purchase of intangible assets

(4)
(60)

(8)
(94)

Payments for guarantee deposits
Proceeds from sales of investment securities

(16)
5(10)
–

Proceeds from collection of guarantee deposits
Payments of loans receivable

43
–

0(0)

Collection of loans receivable
Other, net–
(0)

150

Net cash provided by (used in) investing activities

(33)

(97)

Cash flows from investing activities

Cash flows from financing activities
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling interests
Repayments of lease obligations
Net cash provided by (used in) financing activities

(42)

(0)

(108)
(1)

(124)
(1)

(4)

(4)

(156)

(130)

Net increase (decrease) in cash and cash equivalents

143395

Cash and cash equivalents at beginning of period

3,328

3,483

Cash and cash equivalents at end of period

3,471

3,879

7